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New Market Study, "Confectionery Packaging in South Africa", Has Been Published

Recently published research from Euromonitor International, "Confectionery Packaging in South Africa", is now available at Fast Market Research

Boston, MA -- (SBWIRE) -- 07/11/2014 -- South African retail shelves are sporting an increasing number of imported brands. With the government imposing no duties on importing chocolate, the category is a "free for all". Both manufacturers such as Nestle South Africa and Kraft Foods South Africa import their global brands for occasions such as Easter. Leading retailers such as Pick 'n Pay and Shoprite bring in imported brands from players such as Riegelien, which is a German manufacturer of chocolate. Imports cross all price segments. For example, Shoprite and Checkers had a number of Middle Eastern and Turkish brands for a few months during 2013, particularly in countlines. These brands usually work well with consumers on limited incomes, who regard chocolate as a premium products.

Competitive Landscape

Kraft Foods South Africa dominates South African chocolate confectionery, holding a value share of 41% in 2013. The company's Cadbury Dairy Milk tablet is the leading brand, holding an overall share of 12% in 2013. Its Cadbury Lunch Bar is the leading countline and held an overall share of 5.4% in 2013. Nestle South Africa was second overall at the end of the review period with a 21% value share. The company's Bar One countline was the second-largest, falling into third position overall with a 5% share. Tiger Consumer Brands Ltd held third position with a 12% value share in 2013. The company's Beacon brand was second overall with a value share of 9% in 2013.

It is thought that imported chocolate brands will continue to provide competition for local brands over the forecast period. Despite the fluctuating exchange rate and the current weakness of the rand, it is still cheaper to import some brands rather than produce them locally. This is particularly the case for brands originating from Middle Eastern countries or Turkey, which were widely available in supermarkets such as Shoprite, Checkers and Pick n' Pay. These affordable products will provide competition for local players over the forecast period. However, other brands which are imported from Europe, such as Ferrero's Kinder, Ferrero Rocher or some Cadbury varieties, will struggle to compete with locally produced Cadbury's and Beacon products.

Gum
There remains a trend towards gum in slab envelope format over pellets. This is due to convenience as well as the perceived value for money aspect of the product. Consumers like the fact that they can bite off a piece of the stick, rather than having to consume it in its entirety, as this makes the product last longer. Natela Importers entered this category with the extension of the Beechies sugar-free chewing gum into envelope format in February 2013. Other major brands in this category are Kraft Foods' Stimorol Infinity and Wrigley's 5.

Competitive Landscape

Kraft Foods South Africa led gum sales with a value share of almost 68% in 2013. Its Chappies bubble gum brand held the largest value share of just under 40%, and is a popular fixture on hawkers' tables. The company's Stimorol chewing gum brand was second with a share of 15%, followed by Dentyne with a 10% value share in 2013. Wrigley was the second-largest player at the end of the review period with a value share of 15% overall. The company's Orbit and Airwaves brands held 9% and 6% shares respectively. Natela Importers was third, with its Beechies brand in sixth position overall with a share of 5%. Beechies is also the largest player within sugarised chewing gum.

Industry Prospects

It is thought that leading manufacturers will focus on tapping into new segments, for example older consumers, or the lower income groups, in order to grow sales. There will be increased focus on advertising and innovation in order to stimulate consumer interest in the category, with the core message being to increase the occasions when gum is consumed.

Sugar Confectionery
Manufacturers have focused on innovation in order to attract consumers back to the category. The end of the review period saw innovation in terms of new flavour variants, as well as offering value for money. For example, there is a growing trend towards a larger-sizes within lollipops. Tiger Consumer Brands increased the size of its popular Fizz Pop from 13g to 20.5g over the review period, and other players such as Aldor are implementing similar strategies.

Competitive Landscape

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